W. R. Grace and Company

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W. R. Grace and Company
Type Public (NYSE: GRA)
Founded 1854
Headquarters Flag of the United States Columbia, Maryland
Key people Alfred Festa, CEO & Pres
Industry Basic Materials
Products Specialty Chemicals
Employees 6,500
Website www.grace.com

W. R. Grace and Company (NYSE: GRA) is a Columbia, Maryland, United States based chemical conglomerate.

The company has two main divisions, Davison Chemicals and Performance Chemicals. The Davison unit makes chemical catalysts, refining catalysts, and silica-based products that let other companies make products from refined crude oil. Its Performance Chemicals unit makes cement and concrete additives, fireproofing chemicals, and packaging sealants. The customers include chemicals companies, construction firms, and oil refiners.[1]

Their self-description is "a premier specialty chemicals and materials company." Grace has more than 6,400 employees in nearly 40 countries, and annual sales of more than $2.5 billion.[1] The company's stock, with ticker symbol "GRA," listed in 1953, trades on the New York Stock Exchange.[2]

Contents

[edit] History

W.R. Grace and Company was founded in 1854 in Peru by William Russell Grace (1832-1904), who left Ireland due to the Potato Famine. He went first to Peru to work as a ship's chandler to the merchantmen harvesting guano (from bird droppings, a fertilizer and gunpowder ingredient due to its high levels of phosphorus and nitrogen). The company moved to New York City in 1865. Working in fertilizer and machinery, the company was formally chartered in 1872, and incorporated in 1899.[3] Joseph P. Grace Sr. became company president in 1907. During the Second World War, in 1945, J. Peter Grace Jr., W.R. Grace's grandson, took control of the company. The company began to diversify.

In 1954, the company bought Davison Chemical Company (founded by William T. Davison as Davison, Kettlewell & Company in 1832), and the Dewey & Almy Chemical Company (founded in 1919 by Bradley Dewey and Charles Almy).

At one time, Grace's main business interest was in shipping. To get its products from Peru to North America and Europe, including guano and sugar, and noticing the need for other goods to be traded, William Grace founded a shipping division.[3]

The company bought a 53% stake in Miller Brewing in 1966, for $36 million; Lorraine Mulberger sold the stake for religious reasons.[4] It sold the Miller stake in 1969 to Philip Morris for $130 million, topping a deal with PepsiCo for $120 million.[5][6][7]

In 1987, with a can sealing plant in Shanghai, Grace became the first wholly foreign-owned company to do business in The People's Republic of China.

Grace's corporate headquarters are located in Columbia, Maryland. Although W. R. Grace commissioned the Grace Building in New York City, built in 1971, the company no longer has any offices occupying it.

W.R. Grace and Company has long been a major contributor to the Republican Party. Grace's longtime chief, and heir, J. Peter Grace (1913 - 1995), was not only a personal friend of Ronald Reagan, but Reagan's choice to head what became known as The Grace Commission, which came forth with its report in 1984 recommending that civil servants be replaced, as much as possible, by outside contractors, this being a major initiative of the Reagan Administration, and of George Herbert Walker Bush's Presidency, but especially of George W. Bush's Presidency (with Halliburton, Blackwater, etc.).

[edit] Subsidiaries and products

W. R. Grace & Co. 13 spoke 15"x8.5" aluminum wheel, OEM, 1978 Chevrolet Blazer K5 Cheyenne

Subsidiaries and some of their products include:

[edit] Contamination incidents

W. R. Grace and Company has been involved in a number of controversial incidents of proven and alleged corporate crimes, including exposing workers and residents of an entire town to asbestos contamination in Libby[14] and Troy, Montana, water contamination (the basis of the book and film A Civil Action) in Woburn, Massachusetts, and an Acton, Massachusetts Superfund site.

[edit] Asbestos

While Grace no longer makes asbestos-related products, W. R. Grace and Company has faced more than 270,000 asbestos-related lawsuits. 150,000 lawsuits have been settled or dismissed and 120,000 remain.[15]

After asbestos injury claims unexpectedly nearly doubled in 2000, W. R. Grace & Company filed for bankruptcy protection in 2001. The United States Department of Justice alleged that Grace had transferred 4 to 5 billion dollars to spin-off companies it had recently purchased, shortly before declaring bankruptcy. Justice Department attorneys alleged that this amounted to a "fraudulent transfer" of money in order to protect Grace from civil suits related to asbestos. The bankruptcy court ordered the companies to return nearly $1 billion to Grace, which will remain as part of the assets to consider in the bankruptcy hearings.

The company has a history of environmental crimes, which were summarized in the Seattle Post-Intelligencer on 18 November 1999, headlining "The History of W.R. Grace & Co." These crimes were the basis for the bestselling non-fiction book and popular motion picture, "A Civil Action," which concerned the pollution-destruction of neighborhoods in Massachusetts by W.R. Grace & Co.

[edit] Asbestos Court Case

In 2005, the U.S. Department of Justice began criminal proceedings against W.R. Grace. On February 7, 2005, the department announced that a grand jury in Montana indicted W.R. Grace and seven current and former Grace executives for knowingly endangering residents of Libby, Montana, and concealing information about the health effects of its asbestos mining operations. According to the indictment, W. R. Grace and its executives, as far back as the 1970s, attempted to conceal information about the adverse health effects of the company’s vermiculite mining operations and distribution of vermiculite in the Libby, Montana community. The defendants are also accused of obstructing the government’s cleanup efforts and wire fraud. To date, according to the indictment, approximately 1,200 residents of Libby area have been identified as suffering from some kind of asbestos-related abnormality.[16]

The criminal trial began in February 2009 after years of pretrial proceedings which reached the United States Supreme Court.[17] By the time the trial was set to begin, one of the defendants, Alan Stringer, had died of cancer.

On Friday May 8th 2009, W.R. Grace was acquitted of "knowingly" harming the people of Libby Montana. Fred Festa, chairman, president and CEO said in a statement, "the company worked hard to keep the operations in compliance with the laws and standards of the day." David Uhlmann, a former top environmental crimes prosecutor has been quoted as saying about the W.R. Grace: "There's never been a case where so many people were sickened or killed by environmental crime." The W.R. Grace case has long festered in the court system on a 10-count indictment including charges of wire fraud and obstruction of justice. W.R. Grace has voluntarily paid millions of dollars in medical bills for 900 Libby residents.

[edit] Popular culture reaction

The movie A Civil Action, starring John Travolta, was based on the Grace groundwater contamination law suits in Woburn, MA.

The PBS television show P.O.V., which highlights independent films in August 2007 premiered the movie Libby, Montana that documents the thousands of people in Libby, Montana, that have been exposed to and are suffering the effects of exposure to asbestos. The show also discusses the criminal indictments of many Grace executives for covering up the asbestos related illnesses and deaths.

NPR ran a piece on their show All Things Considered discussing the criminal charges against W. R. Grace. A U.S. attorney general alleges that the company and managers of the mine in Libby, Montana, knew about the dangers of the asbestos they were dumping into the air for over 20 years.[18]

A University of Montana photojournalism master's thesis, Living with Grace, explored the ramifications of living with asbestosis, a disease associated with the vermiculite mine run by W.R. Grace.

On February 19, 2009, the radio show Here and Now broadcast a story about movie Libby, Montana which details the asbestos contamination[19]

On April 22, 2009, the television and radio program Democracy Now! broadcast two segments on the trial of W. R. Grace and some of its employees related to the asbestos contamination in Libby, Montana. [20] [21] Democracy Now! also broadcast a followup interview on May 12, 2009 with activist Gayla Benefield and Andrea Peacock, a Montana independent political and environmental journalist.[22] This interview focused on reactions to the not-guilty verdict in the federal trial, where W.R. Grace and three former executives were acquitted on charges of knowingly exposing workers and townspeople to asbestos, and subsequently participating in a cover-up.

[edit] See also

  • Anderson v. Cryovac, C.A. No. 82-1672-S (D. Mass)(Anne Anderson et al. v. Cryovac Inc. W.R. Grace Inc., John J. Riley Company Inc., Beatrice Inc. et al. Superior Court Civil Action #82-2444, Commonwealth of Massachusetts. Filed May 14, 1982.)
Anderson v. Cryovac, Inc., 96 F.R.D. 431 (D. Mass. 1983)
Anderson v. W.R. Grace & Co., 628 F. Supp. 1219 (D. Mass. 1986)
Anderson v. Cryovac, Inc., 805 F.2d 1 (1st Cir. Mass. 1986)
Anderson v. Cryovac, Inc., 862 F.2d 910 (1st Cir. Mass. 1988), on remand, Anderson v. Beatrice Foods Co., 127 F.R.D. 1 (D. Mass. 1989)
Anderson v. Beatrice Foods Co., 129 F.R.D. 394 (D. Mass. 1989), aff'd, 900 F.2d 388 (1st Cir.), cert. denied, 498 U.S. 891 (1990)
  • Beatrice Foods
  • Riley v. Harr, No. 01-1648 United States Court of Appeals - First Circuit (John J. Riley, Jr. and Diana W. Riley (Plaintiffs, Appellants) v. Jonathan Harr; Random House, Inc., New York; Vintage Books; Random House Audio Publishing, Inc. (Defendants, Appellees)

[edit] References

  1. ^ a b Company Info @ Grace Investor Information
  2. ^ Stock Info @ Grace Investor Information
  3. ^ a b "A Matter of Chemistry" - Time Inc. - Friday, Mar. 23, 1962
  4. ^ "A Deal Between Grandchildren" - Time Inc. - Friday, Sep. 30, 1966
  5. ^ "The Philip Morris USA Story" @ Altria.com
  6. ^ "Miller Brewing Company: How New Leadership is Changing Corporate Culture" Case Study @ Ohio University
  7. ^ Miller Brewing Company @ FundingUniverse
  8. ^ Business Units @ Grace.com
  9. ^ Grace Performance Chemicals @ Grace.com
  10. ^ Grace Construction
  11. ^ Products @ GraceConstruction.com
  12. ^ Darex Website
  13. ^ Grace At Home.com
  14. ^ [JOB-RELATED ASBESTOS EXPOSURES AND HEALTH EFFECTS IN MINING AND MILLING OF VERMICULITE]. National Institute for Occupational Safety and Health. NIOSH Fact Sheet, September 21, 2000.
  15. ^ The history of W.R. Grace & Co. Seattle Post-Intelligence, Thursday, November 18, 1999 (last accessed on August 28, 2007)
  16. ^ United States Department of Justice W.R. Grace and Executives Charges with Fraud, Obstruction of Justice, and Endangering Libby, Montana Community, February 7, 2005 press release (last accessed August 28, 2007)
  17. ^ http://www.missoulian.com/articles/2009/02/25/news/local/news03.txt
  18. ^ NPR.org episode discussing the criminal liability of WR Grace and its executives
  19. ^ http://www.hereandnow.org/shows/2009/02/rundown-219/
  20. ^ http://www.democracynow.org/2009/4/22/a_town_suffering_for_generations_decades
  21. ^ http://i2.democracynow.org/2009/4/22/environmental_crimes_trial_underway_against_wr
  22. ^ http://www.democracynow.org/2009/5/12/wr_grace_acquitted_in_libby_montana

[edit] External links

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